For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Veracyte (VCYT) ten years ago? It may not have been easy to hold on to VCYT for all that time, but if you did, how much would your investment be worth today?
Veracyte's Business In-Depth
With that in mind, let's take a look at Veracyte's main business drivers.
Headquartered in San Francisco, CA, Veracyte is a global diagnostics company that provides clinicians valuable insights to diagnose and treat cancer. The company has a wide array of advanced genomic tests that leverage deep scientific, clinical and machine learning expertise and other capabilities. Presently, the portfolio includes Afirma (for thyroid cancer), Decipher Prostate (prostate cancer), Prosigna (breast cancer), Envisia (interstitial lung diseases) and Decipher Bladder (bladder cancer), with additional tests in development.
These high-performing tests improve diagnostic, prognostic and treatment decisions in cancer and other challenging diseases, helping patients avoid unnecessary procedures and reduce time in finding appropriate treatment. In the United States, Veracyte offers tests through its central laboratories and makes the tests accessible to patients worldwide by collaborating with local labs.
The company recognizes revenues from three sources:
Testing revenues (94% of total revenues in 2024, up 28% from 2023): Upon delivery of the test results, the company bills for testing services considering factors such as payer reimbursement history, contracts and coverage.
Product revenues (3% of 2024 revenues; down 12%): Includes revenues from Prosigna breast cancer assay, the nCounter Analysis System (acquired from Nanostring Technologies, Inc. in 2019) and related diagnostic kits.
Biopharmaceutical and other revenues (3% of 2024 revenues; down 30%): Includes revenues from licensing or providing access to the company’s assets and services, including testing and contract manufacturing.
The company’s 2021 acquisition of Decipher Biosciences expanded its genomic testing menu into urologic cancers and provided Decipher GRID (Genomic Resource for Intelligent Discovery) — a platform and database that helps drive biopharmaceutical partnerships, key opinion leaders (KOL) engagement and pipeline development in urologic cancers.
In the same year, Veracyte acquired HalioDx, which enabled it to produce its own in vitro diagnostic (IVD) test kits for use on the nCounter Analysis System. Veracyte intends to migrate the manufacture of the test kits for the nCounter from NanoString to HalioDx.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Veracyte, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in April 2015 would be worth $3,958.74, or a gain of 295.87%, as of April 10, 2025, and this return excludes dividends but includes price increases.
The S&P 500 rose 160.95% and the price of gold increased 146.09% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for VCYT.
Veracyte continues with a robust display of strength in the testing business using its established diagnostic platform. Afirma’s differentiation is leading to market share gains with more people becoming aware of the compelling evidence supporting its quality and performance. The Decipher Prostrate test is also making strides, achieving a ‘Level 1B’ designation in the updated NCCN guidelines. The company is also progressing with the Decipher bladder cancer test. Veracyte’s strategic R&D investment in long-term growth driver projects is paying off. Favorable solvency appears encouraging. Meanwhile, the SAS funding issue might weigh on the stock. The company’s biopharma business continues to face challenges due to industry-wide spending constraints and less projects. Macro issues dent growth.
Shares have gained 5.36% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Veracyte, Inc. (VCYT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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